Deutsche Bank analyst Lloyd Walmsley raised his price target for Facebook (FB) to $270 from $260 and calls the company a top large-cap pick for 2020.
The stock closed Tuesday up 47c to $198.39.
The analyst is bullish on Facebook and sees the "renewed strength" in the core Facebook app becoming a "critical leg of the story" around the shares in 2020.
As this becomes clearer over the next few quarters, investors should gain comfort in terminal value in the core Facebook app, leading to multiple expansion on top of revenue and earnings upside, Walmsley tells investors in a research note. His updated sum-of-the-parts valuation assumes a higher valuation for core Facebook.
Comments
Log in or sign up to join the conversation.